Payzone chief executive John Nagle and chief financial officer John Williamson secured injunctions in the High Court in Dublin yesterday preventing the recently formed electronic payments group from dismissing them from their posts.
This followed an announcement to the stock exchange by Payzone yesterday morning stating that the two Dublin-based executives had left the company.
Chairman Bob Thian assumed "executive responsibility" at the company with "immediate effect", the statement said.
"John Nagle and John Williamson have created a strong platform for growth at Payzone but the company has now reached a stage of its development where a different set of skills is required.
"There are a number of excellent managers at Payzone and I look forward to working with them to realise the great potential of this business," Mr Thian stated.
Mr Nagle and Mr Williamson went before the High Court at 5.15pm yesterday and were granted three injunctions by Mr Justice George Birmingham.
These restrain Payzone from treating the two executives as being dismissed from their employment and as "having been removed" as directors.
A third injunction was secured restraining Payzone from announcing that the pair had been dismissed or removed as directors.
A full hearing in the High Court is due to be held this morning although legal sources indicated that this could be deferred.
A spokesman for Payzone said it had "no comment to make on the legal proceedings".
He added that the decision to remove Mr Nagle and Mr Williamson was a unanimous one taken by the board and supported by the majority of shareholders.
It is understood that Mr Nagle was informed of the decision to remove him from his position by email on Tuesday night.
Mr Nagle and Mr Williamson told the court that a board meeting held on Tuesday, at which the decision was taken to terminate their employments, was not properly convened.
Under the company's own rules, board meetings are supposed to be held in the Republic, where the company's head office is situated.
It is understood that the meeting took place in Britain.
In addition, they told the court that that their contracts state that they should receive 12 calendar months' written notice of their employments being ended, which has not happened.
The row is believed to centre around the release of a trading update to the stock market.
Payzone was formed on December 5th from the merger of Irish e-payments group Alphyra, which Mr Nagle founded, and British-based ATM operator Cardpoint, which Mr Thian, as executive chairman, led.
It listed on the Alternative Investment Market (Aim) in London.
It is understood that Cardpoint had experienced difficult trading in October and November while Alphyra's business grew.
Mr Nagle is believed to have wanted to issue a trading statement to the stock market in advance of an investor roadshow this week but the board decided against this move.
As a result, Mr Nagle is believed to have declined to participate in the roadshow.
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